From your perspective, what are the biggest trends that shape the approach of metals and mining sector?
China’s export ban on strategic metals, especially Tungsten, is now the largest market factor, and will result in results for years. With China, Russia and North Korea, controls about 90% of the world’s tungsten supply. For practical purposes, Chinese export controls are banned on sale to foreign firms, and tungsten exports to US defense contractors are clearly banned. This will be an intense crisis, except that our Sangdong Tungsten mine will start production within the next several weeks. Sangdong is the world’s largest Tungsten mine, but it cannot replace China’s 90% world supply. Consumers should estimate high prices and frantic efforts to expand the supply for a long time.
In your recent Traidtock interviewYou especially highlighted the lack of mines for Tungsten outside North Korea, China and Russia. What changes do you estimate in the mining place, especially under the influence of tariffs?
President Trump has made it clear that he wants more domestic American mining and processing, which is the right step, so we are sure to see a lot of investment in mining and processing. However, everyone needs to feel that it is a slogan to create the domestic mining industry. For some metals, Tungsten being one, American reserves will never be sufficient to meet domestic demand.
It is important to overcome obstacles to allow mines domesticly, but the US now requires a reliable supply of important metals. Other nations are closing deals for important metals worldwide. The US needs to enter the area to buy time to achieve domestic mining and processing industry.
You also talked about the need to find a balance in the supply chain. How are you preparing Almonty because US navigates this route towards a more balanced supply chain?
Tungsten Quintasiant is military metal. The US uses Tungsten to produce each caliber of the monsoon and produce armor opposing penetration by the tungsten round. As incredible, the more incredible that this production was dependent on Chinese Tungsten, this arrangement is over. Almonty is reclaiming as an American corporation, which will make us eligible for all kinds of assistance from the US government, and we are rapidly integrated into the US Defense Raw supply chain. Very soon, Almonty will officially produce only the US Tungsten Mining Company.
Do you have any unique predictions on metal production approach?
I can predict what will not happen. This trade war has given the excuse to China that it wanted to ban the export of vital metals. China developed its mining sector by exporting raw materials, but China is now a major consumer of Tungsten, Rare Earth and other strategic metals. The sugar industry can use these metals as much as it can be found. They want the same profit margin to convert raw materials into sophisticated products, which we have enjoyed. China will not export Tungsten and other important metals again, whatever he wants, and cheaply, as they did for many years.
